Entrepreneurs call for clear roadmap to revive industrial sector

Business Desk:

Amid mounting pressures, the private sector remains the principal driving force of the country’s economy.

Prolonged high inflation, uncertainty in energy supply, elevated lending rates and deterioration in law and order has pushed industrial enterprises into severe stagnation. According to entrepreneurs, at least 500 small and large factories have been closed over the past 18 months, leaving hundreds of thousands unemployed, while the industrial production index has fallen by 12 per cent. In such circumstances, mere assurances will not restore confidence.

Business leaders are calling for clear policy direction, realistic action plans and long-term reform strategies to halt the haemorrhaging in industry.

Entrepreneurs had long hoped for an elected and stable government to overcome the investment slowdown.

Following the BNP’s landslide victory in a festive election, the business community is set to have an elected government under the leadership of Tarique Rahman. The private sector accounts for around 80 per cent of GDP and the bulk of employment. Restoring confidence and momentum in this sector will therefore be the new government’s greatest test. Without swift policy reforms, an investment-friendly climate and stronger institutional capacity, it will be difficult to keep the overall economy moving, stakeholders warn.

Entrepreneurs in the ready-made garment sector-the country’s principal export earner-as well as in real estate, steel, cement and leather acknowledge that the internal damage to industry is now profound. Analysis of data from Bangladesh Bank and the Export Promotion Bureau (EPB) shows a worrying decline in new investment in recent quarters. Many factories are operating at less than half capacity.

At a meeting on 4 January with BNP Chairman Tarique Rahman, industrialists presented what they described as a bleak picture. They said production costs had risen geometrically, while policy support had not kept pace.